Chapter 8 Product Strategy Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Visual Model Copyright © 2013 Pearson Canada Inc.

Developing a Marketing Strategy: The Marketing Mix Consumer or Business Customer Marketing Mix Promotion (Marketing Communications) (Distribution) Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Total Product Concept A product is “a bundle of tangible and intangible ______________________in exchange for money and other considerations.” Physical product Brand name Service guarantee Brand image Warranty, etc. Package of Benefits Copyright © 2013 Pearson Canada Inc.

Product Items, Lines, and Mixes Chapter 9 Product Concepts ____________________ Product Line Product Mix/ Array A specific version of a product that can be designated as a distinct offering among an organization’s products. A group of _________________ product items. All products that an ___________________. Notes: Rarely does a company sell a single product. Instead, it sells a variety of things that may be categorized into product lines and product mixes. Copyright © 2010 by Nelson Education Ltd.

Copyright © 2013 Pearson Canada Inc. The Product Mix “The _____________of products offered for sale by a company.” A unique product offered for sale; it has a “unique selling point” or “USP.” Think SKU (Stock Keeping Unit) A grouping of product items that have major attributes in common but they may differ in size, form or flavour. Copyright © 2013 Pearson Canada Inc.

Product Line Width and Depth The number of product lines in the mix. Product Line Depth The _______________in the product line. Copyright © 2013 Pearson Canada Inc.

Proctor & Gamble Product Lines

Campbell’s Product Lines and Mix Chapter 9 Product Concepts Campbell’s Product Lines and Mix Notes: All of Campbell’s products constitute its product mix. Each product in the product mix may require a separate marketing strategy. In some cases, product lines and mixes share some marketing strategy components. Consider Nike’s theme, “Just Do It.” An example of Campbell’s product lines and product mix is shown in Exhibit 9.1 (textbook page 133). Discussion/Team Activity: Identify a few companies with extensive product lines and product mixes. Pick one and create a matrix similar to Exhibit 9.1. Evaluate the marketing strategies in use. Copyright © 2010 by Nelson Education Ltd.

Product Line Width and Depth A sampling of Nestle’s depth in one product category. The width of Nestle’s product lines embrace pet foods, baby foods, coffee, frozen meals , ice cream and frozen treats. Copyright © 2013 Pearson Canada Inc.

Product Strategy A number of _________________processes which include: Creating Product Offerings and managing every aspect of those offerings including the concept of “Brand” Move customers through adoption Manage it through the Product Life Cycle Extend the_________________

Copyright © 2013 Pearson Canada Inc. Consumer Goods – B2C “Products and services ultimately purchased for _________________.” Consumer goods are classified into three categories: Convenience Goods Shopping Goods Specialty Goods Factors such as time spent on the purchase decision and the cost of the product determine a goods classification. Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Industrial Goods – B2B Copyright © 2013 Pearson Canada Inc.

Branding Deliberately ________________________(change) the perceived “personality” of a product or product line to deliver to the customer a quality experience and evoke a ________________ to the product or service.

Copyright © 2013 Pearson Canada Inc. Components of a Brand The components of a brand distinguish one company’s product from another company’s product. Those components include: Brand Name – The part of a brand that can be vocalized. Brandmark or Logo – The part of a brand identified by a symbol or design. Trademark – The part of a brand __________________so that only the owner can use it. Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Co-Branding Using the equity of one brand name to market another branded product. There are _____________________on the product. Nestle ice cream uses brand names such as Rolo and Coffee Crisp (popular brands in another Nestle category). Two restaurants such as Wendy’s and Tim Hortons share facilities. Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Private Label Brands Brands produced according to specifications established by the ___________________ The Think Marketing box on p. 165 demonstrates the impact of private label brands. Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Packaging Strategies The objective of a design is always to breakthrough the clutter—shelf clutter. Designers recommend several tips: A brand should _______________ The colour should stand out in the _________________________. The package should be a ______________________. Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Colour and Packaging Coca-Cola’s signature never changes and the brand owns the colour “red.” Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Shape of the Package Molson designed the Molson Canadian Cold Shot package to be relevant to young males. The shape of the can borrowed equity from Red Bull in the energy drink market. Molson introduced a smaller, slimmer can. Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Functions of a Package ______________________________________start and end with the package. A good package: Protects the product Shipping and delivery Markets the product Information/education Legal requirements Provides convenience Use and storage Meets social concerns _________________________ Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Brand Loyalty “The degree of ________________________to a particular brand, product, or service.” Question: If you are a Coca-Cola drinker, how loyal are you to the brand. Would you switch to Pepsi-Cola? Same question for Pepsi drinkers. Copyright © 2013 Pearson Canada Inc.

Stages of Brand Loyalty Copyright © 2013 Pearson Canada Inc.

Copyright © 2013 Pearson Canada Inc. Product Management Product management concerns three key areas: The ____________________________structure for managing current products. The ____________________for developing new products. Dealing with changing ___________________________as products progress through their life cycles. Copyright © 2013 Pearson Canada Inc.

Organization Systems for Managing Brands Brand Management – A brand manager is assigned responsibility for the development and implementation of marketing programs for a specific product or group of products. Example: Brand Manager for Doritos Category Management – A category manager is assigned responsibility for developing and implementing marketing activity for a group of products or product lines. Example: Category Manager for all Frito Lay salty snacks (Doritos, Tostito, Lay’s, etc.). Copyright © 2013 Pearson Canada Inc.

Product Management Decisions All aspects of the marketing mix are managed to maximize profit. Key product decisions embrace: _________________________ Product Mix Expansion (_________________) Brand Design and Packaging Maintenance or Withdrawal (Product Life Cycle) Copyright © 2013 Pearson Canada Inc.

Product Mix Expansion: Applied Dove has expanded its line from soap to become a complete personal care product line. Copyright © 2013 Pearson Canada Inc.

Product Design Change: Applied Product design changes are a key element of Miele’s marketing strategy. Design change has rejuvenated a mature product category. Copyright © 2013 Pearson Canada Inc.

Branding Decisions: Applied Copyright © 2013 Pearson Canada Inc.

Boston Consulting Group Product Portfolio Management Matrix